Unexplained Incomes: - Part 2

Unexplained Incomes: – Part 2

“Miscellaneous Provision”

Following are list of sections that explained how the unexplained incomes are been taxable by the assessing officer: –

Section 69A	Unexplained Money, etc.Where in any year the taxpayer is found to be the owner of any money, bullion, jewellery or other valuable article which is not recorded in the books of account, and the taxpayer offers no explanation about the nature and source of acquisition of such item, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, than the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the taxpayer for such year.
Section 69B	Amount of Investments, etc. not fully disclosed in books of accountsWhere in any year the taxpayer has made investments or is found to be the owner of any bullion, jewellery or other valuable article, and the Assessing Officer finds that the amount expended on making such investments exceeds the amount recorded in the books of account maintained by the taxpayer , and the taxpayer offers no explanation about such excess amount or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, than the excess amount may be deemed to be the income of the taxpayer for such year.
Section 69C	Unexplained ExpenditureWhere in any year the taxpayer has incurred any expenditure and he offers no explanation about the source of such expenditure, or the explanation, if any, offered by him is not, in the opinion of the Assessing Officer, satisfactory, then the amount covered by such expenditure may be deemed to be the income of the taxpayer for such year. Aforesaid unexplained expenditure which is deemed to be the income of the taxpayer by virtue of section 69C shall not be allowed as a deduction under any head of income.
Section 69D	Amount borrowed or repaid on HundiWhere any amount is borrowed on a hundi from, or any amount due thereon is repaid to, any person otherwise than an account-payee cheque, the amount so borrowed or repaid shall be deemed to be the income of the person borrowing or repaying the such amount in the borrowing or repaying year. However it should be noted that if any amount borrowed on a hundi once has been treated as income of any person by virtue of section 69D, then such person shall not be liable to be assessed again in respect of the same amount on repayment thereof. Amount repaid shall include the amount of interest paid on the amount borrowed.

Taxability of Unexplained Incomes: – Section 115BBE provides that any income referred to in section 68 to section 69D shall be charged @ 30% tax rate (plus surcharge, cess) and that no deduction in respect of any allowance or expenditure in computing this income.

Unexplained Incomes: – Part 2

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